Even as the State Government is boasting of earning crores in shape of revenue through auction of mines in Odisha, yet some mines allotted to certain bank-defaulter companies raise eyebrows vis-a-vis proper revenue collection.
The Bhusan Steel has a total gross debt of Rs 42,356 crore by March 31, 2016, and the loans were declared NPA in 2016. Similarly, the Bhushan Power has a gross debt of Rs 37,248 crore by 2016. The Essar Steel also had a gross debt of Rs 29,448 crore by end of 2015-16.
These three companies are among the country’s top 12 big defaulters shortlisted by the RBI against whom banks have initiated insolvency proceedings to recover the loans. While the banks are struggling hard to recover their huge loans through legal proceedings from these big defaulters, many questions have arisen as to how the State Government handed over the 139.2-hectare Ghoraburhani-Sagasahi iron mine with 99.54 million tonne reserve at a premium of 44.35 per cent to the ESSAR Steel last year.
The Bhushan Steel was allotted the Kalmong west iron ore mine in Sundergarh district having 92 MT reserve at a premium of 100.5 per cent this year. The Bhushan Power and Steel was allotted the Netrabandh Pahar iron ore mine at a premium of 87.15 per cent this year.
The premium rates offered to these companies seem strange and impractical. The premium prices indicate that Bhushan Steel and Bhushan Power have offered to pay the sale price of the ore as premium to the Government and incur loss towards production of the ore from their own pocket. This excludes additional payment of royalty, contribution for District Mineral Fund, National Mineral Exploration Trust and other taxes applicable from their own capital.
“While fall in iron ore prices has made it difficult for mining companies to make 20 per cent profit, the companies given mines on higher premiums to run mines now looks fishy.
It all indicates that only by unfair means like manipulation of ore-grade and royalty, illegal transport of mineral and manipulation of ore price are being adopted,” said a mining expert.